The proposed construction of what is to become London City’s tallest office buildings is expected to be put back by at least a year. The ‘Pinnacle’ and ‘Cheesegrater’, as the proposed buildings have been nicknamed, were planned to be built at London’s Bishopsgate and Leadenhall business office regions. Current economic conditions have been blamed for the delay in construction which was meant to be completed between 2010 and 2011 but has now been held off until 2012 at the earliest.
Property Magazine Estates Gazette this week reported that Managing Director Khalid Affar of Arab Investments is trying to secure ~600m for the construction of ‘The Pinnacle’. Mr. Affar reportedly said “In this economic climate, even obtaining relatively small development finance is difficult.” However with an attitude that could be branded as somewhat optimistic, Mr. Affar seems to have no worries renting office space at the new building once the construction is completed claiming that “it was close to agreeing terms with two office tenants to take 100,000 sq ft each.”
Meanwhile a frustrated Stephen Hester, British Land chief executive for the new Leadenhall Building or ‘Cheesegrater’ at 122 Leadenhall, (pictured left) said that postponing the construction would mean the opening of the centre would fall, “late in the next upcycle” just at the time when office rents will be high.
Despite the current teething problems, once completed the new additions will add substantially to the office space to rent in the Bishopsgate and Leadenhall areas.